Starting in 2011, what is the definition of a private enterprise (PE) under Canadian GAAP?
A) A corporation that has no public shareholders.
B) A corporation that has less than 500 shareholders and is not listed on a stock exchange.
C) A corporation which is not profit oriented.
D) A profit oriented enterprise that has none of its issued and outstanding financial instruments traded in a public market and does not hold assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses.

Question

Quizplus · Accepted Answer

According to Canadian GAAP, a private enterprise is defined as a profit oriented enterprise that has none of its issued and outstanding financial instruments traded in a public market and does not hold assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses. This definition took effect in 2011. Choice A is not a complete definition since it does not address the issue of whether the corporation's securities are publicly traded. Choice B is outdated as the current threshold for determining whether a corporation is a private enterprise is based on revenues, not the number of shareholders. Choice C is incorrect as it contradicts the requirement that a private enterprise must be profit oriented.

Starting in 2011, What Is the Definition of a Private